TEN, Ltd Announces Long-Term Charters for up to Three N/B Suezmax DP2 Tankers

Rhea-AI Summary

TEN, Ltd (NYSE:TNP) announced a contract for constructing up to three suezmax DP2 shuttle tankers for long-term employment with a major European end-user. The vessels, to be built in South Korea, are projected to generate minimum revenues of approximately $250 million if all contracts are exercised. COO George Saroglou emphasized that this move will enhance market share and improve profitability while maintaining a focus on fleet growth and shareholder returns through dividends and stock buybacks.

Positive

• Contract for up to three suezmax DP2 shuttle tankers supports long-term employment.
• Projected minimum revenues of around $250 million enhance financial outlook.
• Strategy focuses on fleet growth and renewal, improving market share.

Negative

• None.

ATHENS, Greece, July 09, 2020 (GLOBE NEWSWIRE) -- TEN, Ltd (“TEN” or the “Company”) (NYSE:TNP) today announced the contract for the building of up to three suezmax DP2 shuttle tankers on long-term employment to a major European end-user.  The vessels will be built in South Korea and the time charter equivalent minimum revenues to be generated over the duration of the respective contacts, should all be exercised, are expected at about $250 million.  

“TEN continues its profitable and market proven policy of attractive long-term charters to grow its fleet at periods of competitive newbuilding prices,” Mr. George Saroglou, COO of TEN commented. “By doubling our presence in this very selective with high-barriers-to-entry sector, we add market share and substantially increase our bottom line. Accretive fleet growth and renewal remains a cornerstone of our strategy which along with healthy dividends and stock buybacks should assist for a more realistic share valuation going forward,” Mr. Saroglou concluded.

ABOUT TSAKOS ENERGY NAVIGATION

TEN, founded in 1993 and celebrating this year 27 years in the capital markets, is one of the first and most established public shipping companies in the world. TEN’s diversified energy fleet currently consists of 65 double-hull vessels in the water, one LNG carrier, two suezmax tankers and up to three suezmax DP2 shuttle tankers under construction, constituting a mix of crude tankers, product tankers and LNG carriers, exceeding 8.0 million dwt.

ABOUT FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

For further information, please contact:

Company
Tsakos Energy Navigation Ltd.
George Saroglou
COO
+30210 94 07 710
gsaroglou@tenn.gr 

Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Markella Kara
+212 661 7566
ten@capitallink.com 

FAQ

What new contract did TEN (TNP) announce on July 9, 2020?

TEN announced a contract for building up to three suezmax DP2 shuttle tankers for long-term employment.

How much revenue is TEN (TNP) expected to generate from the new contracts?

The new contracts are expected to generate a minimum of approximately $250 million if fully exercised.

Where will the new suezmax tankers for TEN (TNP) be built?

The new suezmax tankers will be built in South Korea.

What is TEN's long-term strategy regarding fleet growth?

TEN aims to grow its fleet through attractive long-term charters while focusing on shareholder returns.